Inauguration of Ram Temple Marks a New Chapter for Ayodhya's Tourism Industry

The inauguration of the Ram temple in Ayodhya has the potential to draw a minimum of 50 million tourists annually, surpassing popular religious destinations like the Golden Temple and Tirupati Temple. Significant investments in infrastructure, including the development of airports, are expected to transform this once remote town in Uttar Pradesh into a prominent stop on the tourism circuit.

Brokerage Jefferies in a report estimates that a USD 10 billion makeover of Ayodhya with a new airport, revamped railway station, township and improved road connectivity will likely drive a multiplier effect with new hotels and other economic activities. It "could attract 50 million+ tourists a year".

The Golden Temple in Amritsar welcomes approximately 30-35 million visitors annually, while the Tirupati Temple sees around 25-30 million visits. On a global scale, Vatican City attracts about 9 million tourists each year, and Mecca in Saudi Arabia sees around 20 million visitors annually.

According to a report of PTI, Religious tourism is still the biggest segment of tourism in India, according to Jeferies. Several popular religious centres attract annual tourist traffic of 10-30 million despite the existing infrastructural bottlenecks. And hence, the creation of a new religious tourist centre (Ayodhya) with improved connectivity and infrastructure can create a meaningfully large economic impact. Tourism contributed USD 194 billion to FY19 (pre-Covid) GDP and is expected to grow at an 8 per cent CAGR to USD 443 billion by FY33, it said, adding tourism to GDP ratio in India at 6.8 per cent of GDP is below most of the large emerging/developed economies; which are higher by 3-5 percentage points.

Phase 1 of the new airport in Ayodhya is now operational, capable of accommodating 1 million passengers. Anticipated developments include increased domestic capacity and the introduction of an international terminal by 2025, with the capability to handle 6 million passengers. The railway station has undergone an upgrade, doubling its capacity to accommodate 60,000 passengers per day. Additionally, plans for a 1,200-acre greenfield township are underway, accompanied by enhancements to road connectivity.

At present Ayodhya has around 17 hotels with 590 rooms. 73 new hotels are in the pipeline, of which 40 are already under construction. While Indian Hotels, Marriott and Wyndham have already signed deals for hotels, ITC is exploring opportunities in Ayodhya. Oyo plans to add 1,000 hotel rooms in Ayodhya.